The cryptocurrency craze is at an all-time high. It’s no longer a matter of age, the younger generation is equally invested in this frenzy as anybody else. As of May of this year, investing in cryptocurrency in India stood at nearly $6.6 billion (Rs 49,189 crore) from just $923 million a year earlier.
If you’ve heard the word being thrown around in a lot of conversations lately but are not quite sure of what that entails, then here’s everything you need to know.
What is cryptocurrency?
Cryptocurrency or crypto is essentially just digital currency that is based on blockchain technology. Although highly speculative in nature, crypto is considered to be an alternative investment option outside of stocks and bonds if invested correctly and with proper guidance. This form of currency has gained so much value in the past year that Bitcoin, the best-known crypto, has the value of gold. Some even refer to it as digital gold.
Despite the initial blockers on crypto investments, the Indian population has taken to cryptocurrency with great enthusiasm. Startups like WazirX, CoinDCX, ETtech are making it easier for people to invest in crypto. Due to their rising real estate prices and increased taxation on precious metals such as gold and silver, more promising returns — they’ve been able to lure in even younger investors.
However, cryptocurrency exchange guidelines in India do have an age bar, allowing only those above 18 years to actively invest. But teenagers, with the guidance of their parents/caretakers, are able to trade through a family member’s account.
How to invest in cryptocurrency in India?
Here’s a step-by-step breakdown of how you can start investing in cryptocurrency in India:
Step 1: Find a trustworthy crypto exchange platform
Currently, there isn’t much of a structure when it comes to crypto trading. So look for well-known crypto exchange platforms in India before you begin investing. Some popular names right now are WazirX, CoinDCX, and CoinSwitch Kuber among others.
Step 2: Create an account with your parent
Head to your chosen platform, select the prompt that says crypto exchange for trading and begin creating your/your parent’s account. Fill in all your details correctly (there will be a KYC verification later), enter the amount you plan to invest and then move on to the next step.
Step 3: Set up the account for trading
To begin trading, you must first ensure there’s money to exchange in the account. You will be prompted to link your bank account and then transfer money to it to further your investments.
Step 4: Make your first investment
Here’s where all your research will play a big role. It’s here that you need to pick the cryptocurrency you want to invest in so choose wisely. Some of the best cryptocurrency to invest in India right now include Bitcoin (BTC), Ether (ETH) and Polygon (MATIC) among others.
Step 5: Secure your account
Once you’ve invested, make sure you add in relevant codes to safe-keep your account and protect it from any hacking dangers. Most experts advise storing the coins you’ve purchased in a crypto wallet.
Best Crypto Wallet for Teens in India
Most crypto platforms come with the facility of offering crypto wallets that allow you to store public and/or private keys for all your cryptocurrency transactions. Additionally, there are external wallet-based softwares that help you store keys. But when it comes to picking the best crypto wallet, you should consider factors such as online customer support, transaction charges, platform security and user-friendliness. Here are some of the best crypto wallet in India right now:
1) WazirX Multi-Cryptocurrency Wallet
WazirX is an indigenous crypto exchange platform that comes with a web & mobile-based wallet facility. The wallet uses a two-factor authentication security system and does not charge any deposit fee. However, withdrawals are subject to fees depending on the cryptocurrency.
2) Vauld Wallet
Vauld is an online hot wallet that is integrated with its internal crypto platform. It allows you to store 55 major cryptocurrencies including BTC, ETH, USDT, DOGE, LTC, MATIC, ATOM, BAT and UNI. Vauld allows you to create a fixed deposit of your cryptocurrencies & earn up to 12.68% as interest.
3) Coinbase Bitcoin Wallet
Coinbase is a mobile-based crypto wallet where you can store & exchange Bitcoin and other digital currencies. It uses biometric authentication technology for security and does not require a Coinbase account for wallet transactions. It’s also free to install and use!
4) Unocoin Bitcoin Wallet
Another app-based crypto wallet, Unocoin is compatible with both Android and iOS devices. The app also comes with a merchant gateway service that allows online businesses to accept bitcoins. While it does not charge a fee to store and receive bitcoin, it does include a miners fee (when you send bitcoin to a bitcoin address).
5) BuyU Coin Multi-Cryptocurrency Wallet
This is a multi-cryptocurrency exchange platform that has been operating in India since 2016. Using the wallet requires a two-factor authentication system and an open account with BuyU Coin. The wallet creation here is free but does charge withdrawal fees based on the type of cryptocurrency.
Teens investing in cryptocurrency in India and looking for the top crypto wallets should consider their long-term and short-term investment strategy, their choice of crypto, their funding brackets, etc before choosing a wallet. Crypto wallets make it safer to store your currency (through keys) rather than letting the currency stay in an exchange account.
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